Aak Ab · OMXSTO:AAK
Aak Ab — Investor Day (November 2015)
18 slides from Aak Ab's investor day presentation, Nov 18, 2015
Slide 1: SoLA update
Gerardo Garza President SoLA SoLA update
Slide 2: Agenda
Agenda Macroeconomic landscape in SoLA: Brazil Market landscape: Customers & Consumers SoLA Capabilities Manufacturing capacity Supply chain Co-Development Go-to-Market Brazil site status Ramp-up 2 The Co-Development Company
Slide 3: Macroeconomic Landscape: Brazil's economic environment has changed
Macroeconomic Landscape Brazil’s economic environment has changed... Recent highlights in international press Brazil’s GDP annual growth (%) Analysts’s average forecast by date 3,00 FT: “Brazil’s terrible fall from economic grace...S&P’s decision to downgrade the country’s debt to junk is a warning”
Slide 4: Macroeconomic Landscape: outlook for AAK SoLA remains positive
Macroeconomic Landscape ...but outlook for AAK – SoLA remains positive. Basis for market potential highlight in investment case... ...that continues to provide a positive outlook Most global customers are established with manufacturing Reuters: “Nestlé sees space for growth in Brazil and keeps footp
Slide 5: Market Landscape SoLA: Customers & Consumers
Market Landscape SoLA Customers & Consumers Population 315 million Strong emerging middle class 50% growth in the last decade & now representing > 30% of Latam population, up to 50% in Brazil. Packaged food market: 2015: US$ 151 billion; CAGR 2015-19: 2,71% Oils & Fats’ Consumption* (mio MT) 7,4 7,2
Slide 6: Market Landscape SoLA: Packaged Foods
Market Landscape SoLA Packaged Foods $ 150,9 bio. Sauces, Dress. Biscuits & Dairy Baked Goods Confectionery & Condiments Snack Bars $ 38,3 bio. $ 35,4 bio. $ 12,8 bio. $ 25,0 bio. $ 11,4 bio. Ice Cream & Spreads Soups Infant Nutrition Oils & Fats Frozen Desserts $ 1,2 bio. $ 1,0 bio. $ 2,0 bio. $ 9,
Slide 7: Market Landscape: market potential by country and segment
Market Landscape Infant Food Bakery Dairy Frying CCF Nutrition Service BRAZIL ARGENTINA CHILE PERU URUGUAY Market Potential: High Medium Low / Not Significant Focus for AAK: Source: Euromonitor 7 The Co-Development Company
Slide 8: Market Landscape: Customers
Market Landscape Customers Global Regional Local BRAZIL ARGENTINA CHILE PERU URUGUAY AAK CAGR 2013 – 15: 49% 32% 37% Strong Position Medium Position Low / Not Significant Source: Euromonitor 8 The Co-Development Company
Slide 9: Key players in the CCF market
Market Landscape Key players in the CCF market All others 12% Player # 7 2% The big five, all growing Player # 6 3% above market average Player # 1 Player # 5 32% 3% Strong presence of regional Player # 4 & local players 4% Significant number of small Player # 2 Player # 3 23% local players 21% AAK
Slide 10: Shares in the Oils & Fats' market
Market Landscape Shares in the Oils & Fats’ market AAK 2,0% Others 31,3% Competitor A 30,8% Competitor E 3,8% Competitor D Competitor B 5,6% 20,8% Competitor C 5,7% * Shares in volume Source: Euromonitor & AAK Market Intelligence 10 The Co-Development Company
Slide 11: Shares in the semi-speciality & speciality CCF market
Market Landscape Shares in the semi-speciality & speciality CCF market Others 8% Competitor E 7% Competitor D 3% Competitor A 30% Competitor C 8% Competitor B 8% AAK 36% * Shares in volume Source: Euromonitor & AAK Market Intelligence 11 The Co-Development Company
Slide 12: Consumers & Customers' trends & drivers
Market Landscape Consumers & Customers’ trends & drivers Consumers Customers Value for Money Core Bss & Vol Share Cautious Spending Protection AAK Productivity, Health & Wellness The Co-Development Efficiency & Savings Nutrition & Company Functionality Formula Optimization Convenience Innovation & N
Slide 13: Product Categories Growth Forecast
Market Landscape Product Categories Growth Forecast Baked Goods Ice Cream Biscuits 1,3% 3,5% 1% 2,5% 3,5% 2,2% Confectionery Infant Nutrition Dairy 3,5% 9% 3% 2,8% 3,8% 3,7% Food Service 5% Volume growth 2015 CAGR 2015-2019 7,4% Source: Euromonitor - Brazil 13 The Co-Development Company
Slide 14: Performance SoLA YTD
Performance SoLA YTD Organic volume EBIT growth Improvement +22% +112% EBIT/kilo improvement +74% 14 The Co-Development Company
Slide 15: SoLa Capabilities
SoLa Capabilities Manufacturing Sites UY & BR Supply Chain Sourcing & Trading Sales CI Teams Agents & Distributors Go to Market Operations Co-Development Innovation Center & Application Labs (CCF, Dairy, Bakery) Local Product Development 15 The Co-Development Company
Slide 16: SoLA Capabilities: Brazil Site Status
SoLA Capabilities Brazil Site Status Project aligned to plan, to be delivered on time Ramp-up during next 18-24 months Strong interest from key customers 16 The Co-Development Company
Slide 17: SoLA Capabilities: Volume Ramp-Up
SoLA Capabilities Volume Ramp-Up 160 000 140 000 120 000 100 000 80 000 60 000 40 000 20 000 45,24% CAGR 0 2015 2016 2017 2018 2019 Vol in MT. 17 The Co-Development Company
Slide 18: www.aak.com
www.aak.com